Corona Restart Making the supply chain crisis-proof with resilient supply chains

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Supply chain risk management

One of the most important lessons learned by production and trading companies from the corona crisis is that more attention must be paid to the risk assessment of supply chains. In addition to optimising costs, the risks involved in supply chain design must also be considered. Thus, future-proof and competitive supply chains are characterised by three qualities:

With the extension of its supply chain design services, agiplan integrates these insights.

Corona Restart: Our agiplan service package

 

agiplan's risk management for resilient supply chains

In every crisis situation, plans for future risk avoidance land on the agenda of the company's strategic orientation. However, it is not uncommon for these plans to be abandoned as soon as the worst seems to be over. Redundancies, higher inventory levels and risk hedging are ultimately directly reflected in higher costs. agiplan supports companies in designing their value creation network in an efficient and cost-optimised manner - and in addition to this, it helps to increase the resilience of the supply chains at particular focal points. For this purpose, the costs of resilience are compared with the benefits, so that risk management and the investment in resilience can be assessed from a business perspective.

The agiplan risk management thus provides answers to the following questions:

With these answers, solutions for the realignment of the supply chain are provided in a targeted manner.

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Supply Chain Design – Building resilient supply chains with balanced costs.

Supply Chain Design – Building resilient supply chains with balanced costs.

Risk-return tradeoff

Only in exceptional cases is it possible to reduce the risk at zero cost. Typically, the costs for investments or operations decrease when companies accept higher risks for failures or disruptions. On the other hand, security is bought by higher costs for risk avoidance. If, however, it is possible to assess the amount of loss in the event of risk - ideally by taking into account the probability of occurrence - this can be incorporated into business decisions and make the costs of risk avoidance transparent and realistically calculable.

The prerequisite - and this is developed in a targeted manner together with agiplan - is to clarify which risks for the supply chain should be included in the analysis. Exogenous and/or endogenous risks are systematically filtered and narrowed down to the few risks that are relevant for the range of articles.

The filter for limiting the article portfolio

The filter for limiting the article portfolio

agiplan analyses the existing value chains of client companies for their performance and develops individual solutions that strengthen the resilience in supply chains. As a result, the companies receive tested recommendations for action and support in their strategic decisions for an optimised and crisis-proof global logistics and production network.

Modelling of resilient supply chains

As with classic optimisation approaches, the first step in the supply chain risk management is to make the current status transparent, evaluate it and identify the weak points. A suitable way to do this is to model the network with the established software PSIglobal from the leading logistics software producer PSI Logistics. In addition to the optimisation potential the software offers, it also provides a productive and useful playground for "what if...?" questions. It can be shown in detail what effects a lock-down of some suppliers has on the entire network or what effects multiple sourcing has on the transport cost structure.

Modellierung von resilienten Lieferketten

Make reliable predictions - through software-based supply chain modeling

Inefficiencies and focal points are identified from the analysis of the current state of the network in conjunction with the conducted risk analysis. The resulting measures and scenarios for optimising the value creation network are also modeled in order to make the concrete monetary effects visible. The risk minimisation measures that are included can also be examined in terms of cost impact. The determined risk assessment of the suppliers can be imported into the model so that the strengthening of the resilience from the current to the target network is clearly visualised.

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